1. Shamah (Pty) Ltd sold its property situated on Plot 23096 Phase 4 Gaborone during the year...
Question:
1. Shamah (Pty) Ltd sold its property situated on Plot 23096 Phase 4 Gaborone during the year ended 31 December 2014. Shamah (Pty) Ltd also sold its investment in the shares of Amanda (Pty) Ltd during the year. The following details are relevant to the two disposals:
1. Plot 23096 was originally purchased for P168, 000 in September 2002.
2. A factory building was constructed on Plot 23096 in February 2004 for a cost of P1, 020, 000.
3. The factory was extended in August 2008 for a cost of P810, 000.
4. Plot 23096 was sold in January 2014 for proceeds of P10, 500,000.
5. The investment in the shares of Amanda (Pty) Ltd was purchased in June 2005 for a cost of P3, 840,000. The shares were sold in February 2014 for P1, 800,000.
6. Amanda (Pty) Ltd is not listed on the Botswana Stock Exchange (BSE).
7. Shamah (Pty) Ltd has a capital loss brought forward from the prior year of P411, 275.
Required:
Calculate the net disposal gain of Shamah (Pty) Ltd for the year ended 31 December 2014
